CDIC Expands Coverage

Changes to deposit protection include the type & duration of certain products.

What is changing?

The Canada Deposit Insurance Corporation (CDIC) has made the following changes (effective April 30, 2020) to its deposit protection service:


  • Expanded coverage to include eligible deposits held in foreign currency; 

  • Extended coverage to include all eligible deposits with terms greater than 5 years;

  • Eliminated deposit insurance protection for traveller’s cheques.


The expanded coverage increases the type and duration of products covered, but there is no change to the C$100,000 insurance limit. If you hold deposits in both Canadian dollars and U.S. dollars with a member institution, CDIC coverage will only cover an equivalent amount of C$100,000 in all currencies, based on the Bank of Canada’s end-of-day published exchange rates. 

For example, if you hold $50,000 in a Canadian high-interest savings account, and U.S.$40,000 in a U.S. high-interest savings account with the same member institution, you are not fully covered. The U.S.$40,000 is equivalent to C$55,912 based on the previous day’s (April 28) exchange rate of 1.3978, posted by the Bank of Canada. In this instance, C$5,912 will now not be insured (versus none of the U.S. dollar high-interest savings account insured previously).  

Please see the CDIC’s FAQ for additional details.

Richardson GMP’s approach to CDIC coverage changes 

In light of the new coverage, we first note that any U.S.-dollar deposits at Canada’s member financial institutions will automatically be covered by CDIC after April 30, 2020. There is no action you need to take.

Richardson GMP will begin to offer U.S.-dollar Guaranteed Investment Certificates (GICs) on and after April 30, 2020 from those of our eligible GIC issuers who have made U.S.-dollar GICs available. 

Richardson GMP already offers GICs with terms greater than five years from those of our eligible GIC issuers who offer them. CDIC coverage will automatically apply on and after April 30, 2020. 

If you require any further guidance, our team is available to help you navigate these changes. Please don’t hesitate to contact us if you have any questions about our deposit products or other matters.